The Government proposes to set up National Company
Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT).
Provisions have been incorporated in the Companies Bill, 2011 which
has been introduced in the Lok Sabha on 14.12.2011.
The establishment of NCLT and NCLAT as specialized Quasi Judicial
Bodies with professional approach will have the following beneficial
effects:
(i) reduce pendency of winding up cases and shorten the period of winding-up process;
(ii) avoid multiplicity and levels of litigation before High Courts and
quasi-judicia Authorities like Company Law Board (CLB), Board for
Industrial and Financial Reconstruction (BIFR) and Appellate Authority
for Industrial and Financial Reconstruction (AAIFR) as all such matters
will then be heard and decided by NCLT;
(iii) the appellate procedure will be streamlined with an appeal
against order of the NCLT lying before NCLAT and with further appeal
against the order of NCLAT lying with the Supreme Court only on points
of law, thereby reducing the delay in appeals; and
(iv) the burden on High Courts will be reduced and BIFR and AAIFR will be dissolved.
These Tribunals can become operational only after the enactment of the said Bill.
This information was given by the the Minister of State in the Ministry
of Corporate Affairs Shri R.P.N. Singh in Rajya Sabha today in reply to
a written question whether Government proposes to set up National
Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal
(NCLAT); the details in this regard; the reasons for setting up of NCLT
and NCLAT; and by when these Tribunals would start their operation in
the country
